SUMMARY AND ALARMING

Evening Star, Issue 22631, 24 April 1937, Page 14

SUMMARY AND ALARMING

BUYING DUT DF RDADB GOODS SERVICES

DAHGERBUS STATE KSKOFOIY

rraa United Peess Association.]

WELLINGTON, April 24,

Adverse comment on the decision a..no._u.ced by the Transport Minister that the Government is to buy out all road goods services which compete with the railways for 30 miles and over was made to a ‘ Post ’ reporter to-day by Mr Heany, secretary of the Associated Chambers of Commerce of New Zealand.

“ This will have the alarming effect of establishing an absolute State monopoly in long-distance goods transport,” he said. “It is a bold and quick way for the railways to dispose of competitors, and a step towards Socialism. It removes for. good and all any chance of working oat a system of economic balance as between road and rail services, a subject which is engaging the bost brains of many countries, but it is an effortless short cut to ignore all underlying economic factors, and c'.cse a series of quick deals which will henceforth remove competition.” .

The total capital invested in licensed goods services over all distances in 1936 was .£1.924,000, and the total of operators 2,004, indicating that the State will require -to find a very substantial sum to acquire the. services contemplated in the proposal. The money so spent will represent additional capital sunk into the railways.

With regard to the aspect that it might be good business on the part of the Government to acquire' these road services, he ashed what guarantee had the public of future service? The world-wide tendency of monopolies, particularly State monopolies, was toparticularly State monopolies, was tor wards _ stagnation and uneconomic operation. -

“These wholesale purchases by, the State will reduce still further the avenues., in which private enterprise may engage' itself, and fewer people will be left to pay the country’s heavy taxation burden.”

He also points out that if the State does not pay road taxation, or if it discontinues road services, there will be a further addition to’ the taxes on the general community for reading purposes. “ Altogether,” he concluded, “ commercial people and. the community at large cannot but view with very grave concern this proposed State purchase of roads goods services and the establishment of a State monopoly.”